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Home Questions ZNEYH7TCAB
Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the codes provided below-
Assertion: The business of the partnership should be lawful although not specifically included in the definition of partnership under the Partnership Act 1932..
Reasoning: Any unlawful activity can not be carried in the country.

Options:

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.

Assertion (A) is true but Reasoning (R) is not correct.

Assertion (A) is not true but Reasoning (R) is correct.

Correct Answer:

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Explanation:

Unlawful business: in case any unlawful activities are happening in the business of the firm to be carried on or for the partners to carry it on in partnership, the firm may be dissolved.

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